CREDIT QUALITY AND SUBSTITUTION IN SME FINANCE

We investigate whether and how SMEs’ credit quality influences their substitution of bank credit for trade credit. Using data from the five largest European countries, we find that substitution of bank credit for trade credit decreases during the financial crisis, but it decreases significantly less for ex ante low credit quality firms. We control for pre-crisis or lagged firm characteristics including size and external finance dependence, industry effects, sample selection effects and cross-country heterogeneity. We also find that low credit quality firms increase their absolute and relative trade credit usage significantly more than high credit quality firms during the financial crisis. The effects are consistent across countries and stronger for net trade credit borrowers and financially constrained firms. The evidence highlights how credit quality influences demand-side driven substitution in SME finance.

Pengelolaan Wakaf Uang Melalui Aplikasi Fintech Pada Koperasi Syariah Di Kota Bandung

This study aims at providing an insight into the legal status of waqf through application in fintech pursuant to Law No41 of 2004 and Law no 11 of 2008 on Information and electronic transactions, a form of nadzir responsibility for managing waqf assets through fintech applications and then seeking a model for the economic empowerment of individuals through through the use of fintech applications. The method employed in this study is a method of regulation, referring to qualitative legal research. The results found that the application of fintech applications in the management of cash waqf is not specifically governed by Waqf or ITE Law, but still permitted as long as the applicable law is not in contravention. In the management of waqf nazhir, the management of waqf properties shall be responsible and legal proceedings can be taken in the event that waqf property is lost due to negligence. In collaboration with Bandung's city of fintech companies, the sharia cooperative registered as Nazhir waqf cash is owned only by KSPPS BMT ITQAN where, in the form of SME finance for members based on waqf funds, the model of waqf management is used through the Rumah Pembiayaan Majelis (RPM) empowerment program, based on a fintech application called itQanmobile and kitawakaf.com, a social crowdfunding platform fintech

Brecha de género en el acceso al financiamiento en Centroamérica y República Dominicana

La evidencia empírica internacional muestra que las mujeres tienen menos acceso al financiamiento, tanto al crédito personal como al crédito empresario (según el género de quién lidera la empresa). Esta brecha de género, que se debe a factores de oferta y de demanda, preocupa, tanto desde el punto de vista de equidad o igualdad de oportunidades, como de la eficiencia, ya que en una economía de mercado el acceso al financiamiento es clave para la asignación eficiente de los recursos, y cualquier imperfección en su funcionamiento se puede traducir en menos crecimiento económico. En este trabajo se analiza la brecha de género con tres bases de datos distintas, Global Findex, una encuesta a nivel de individuos, SME Finance Forum, datos agregados estimados, y Enterprise Survey, una encuesta a nivel empresarial que informa el género del gerente general. Se destaca que, en ningún caso, ni a nivel personal ni a nivel empresarial, ha sido posible eliminar las brechas incluyendo factores observables. Por lo tanto, las mujeres en la región están más desaventajadas y esto es un motivo de preocupación, ya que incide en la productividad de la economía, la fertilidad y la tasa de acumulación del capital humano, tres dimensiones donde los países estudiados muestran déficit.

The Importance of Financial Theories for SME Capital Structure Decisions

This chapter aims to analyze the importance of financial theories for SME capital structure decisions. The financial theories considered for this study were trade-off theory and pecking order theory. From the various empirical evidences researched in the Web of Science and Scopus database, it was found that most SME capital structure decisions follow the financial theory of hierarchical hierarchy, that is, the SME finance their investment opportunities through retained earnings, debt issuance, and finally stock issuance.